103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2433

 

Introduced 2/15/2023, by Rep. Camille Y. Lilly

 

SYNOPSIS AS INTRODUCED:
 
New Act
105 ILCS 5/2-3.28  from Ch. 122, par. 2-3.28
105 ILCS 5/18-8.15
30 ILCS 805/8.47 new

    Creates the Education Prioritization Act. Beginning with fiscal year 2024, requires the General Assembly to appropriate for the evidence-based funding formula under the School Code an amount that is equal to or exceeds the sum of: (i) the total amount appropriated for the evidence-based funding formula during the fiscal year immediately preceding the fiscal year for which the appropriation is being made; and (ii) 51% of total new general funds available for spending from estimated growth in revenues and funds available because of budgeted program growth and decline in the fiscal year for which the appropriation is being made; but in no event shall the sum be less than a certain percentage required under the Act. Requires a continuing appropriation if the General Assembly fails to make sufficient appropriations to fund the evidence-based funding formula. Amends the School Code to make changes concerning a system for accounting for revenues and expenditures and evidence-based funding. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB103 29402 RJT 55793 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB2433LRB103 29402 RJT 55793 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Education Prioritization Act.
 
6    Section 5. Educational appropriations. Beginning with
7fiscal year 2024 and in each fiscal year thereafter, subject
8to the provisions of Section 10 of this Act, the General
9Assembly shall appropriate for the evidence-based funding
10formula set forth in Section 18-8.15 of the School Code an
11amount that is equal to or exceeds the sum of: (i) the total
12amount appropriated for the evidence-based funding formula set
13forth in Section 18-8.15 of the School Code during the fiscal
14year immediately preceding the fiscal year for which the
15appropriation is being made; and (ii) 51% of total new general
16funds available for spending from estimated growth in revenues
17and funds available because of budgeted program growth and
18decline in the fiscal year for which the appropriation is
19being made; but in no event shall the sum be less than the
20percentage required under Section 10 of this Act. The
21Commission on Government Forecasting and Accountability shall
22certify the amount of total new general funds available for
23spending.
 

 

 

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1    Section 10. State and federal funding. State funding for
2the evidence-based funding formula set forth in Section
318-8.15 of the School Code shall be appropriated pursuant to
4Section 5 of this Act so that the sum of State and federal
5spending represents no less than 51% of the total revenues
6available from local, State, and federal sources for
7elementary and secondary education programs for the current
8fiscal year, as estimated by the State Superintendent of
9Education.
 
10    Section 15. Continuing appropriation. If the General
11Assembly fails to make appropriations to the State Board of
12Education in fiscal year 2024 or in any fiscal year thereafter
13sufficient to fund the evidence-based funding formula set
14forth in Section 18-8.15 of the School Code, this Act shall
15constitute a continuing appropriation of all amounts necessary
16for that purpose.
 
17    Section 20. Governor's budget. Beginning with fiscal year
182025 and in each fiscal year thereafter, the Governor shall
19include in his or her annual budget an allocation for
20elementary and secondary education that conforms to the
21provisions of this Act.
 
22    Section 85. The School Code is amended by changing

 

 

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1Sections 2-3.28 and 18-8.15 as follows:
 
2    (105 ILCS 5/2-3.28)  (from Ch. 122, par. 2-3.28)
3    Sec. 2-3.28. Rules and regulations of budget and
4accounting systems. To prescribe rules and regulations
5defining what shall constitute a budget and accounting system
6required under this Act. The rules and regulations shall
7prescribe the minimum extent of verification, the type of
8audit, the extent of the audit report and shall require
9compliance with statutory requirements and standards and such
10requirements as the State Board of Education deems necessary
11for an adequate budget and accounting system. For the
122023-2024 school year and thereafter, the rules and
13regulations shall prescribe a system for accounting for
14revenues and expenditures at the individual school level that
15includes, without limitation, the following:
16        (1) accounting for expenditures for school
17    administration, regular instruction, special education
18    instruction, instructional programs for children of
19    limited English-speaking ability, instructional support
20    services, and pupil support services;
21        (2) salary expenditures reflecting actual staff
22    salaries at each school;
23        (3) accounting for operations, including
24    non-instructional pupil services, facilities, and business
25    services; and

 

 

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1        (4) such other requirements as the State Board of
2    Education deems necessary to provide for a uniform and
3    transparent system of accounting at the school level.
4(Source: P.A. 81-1508.)
 
5    (105 ILCS 5/18-8.15)
6    Sec. 18-8.15. Evidence-Based Funding for student success
7for the 2017-2018 and subsequent school years.
8    (a) General provisions.
9        (1) The purpose of this Section is to ensure that, by
10    June 30, 2027 and beyond, this State has a kindergarten
11    through grade 12 public education system with the capacity
12    to ensure the educational development of all persons to
13    the limits of their capacities in accordance with Section
14    1 of Article X of the Constitution of the State of
15    Illinois. To accomplish that objective, this Section
16    creates a method of funding public education that is
17    evidence-based; is sufficient to ensure every student
18    receives a meaningful opportunity to learn irrespective of
19    race, ethnicity, sexual orientation, gender, or
20    community-income level; and is sustainable and
21    predictable. When fully funded under this Section, every
22    school shall have the resources, based on what the
23    evidence indicates is needed, to:
24            (A) provide all students with a high quality
25        education that offers the academic, enrichment, social

 

 

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1        and emotional support, technical, and career-focused
2        programs that will allow them to become competitive
3        workers, responsible parents, productive citizens of
4        this State, and active members of our national
5        democracy;
6            (B) ensure all students receive the education they
7        need to graduate from high school with the skills
8        required to pursue post-secondary education and
9        training for a rewarding career;
10            (C) reduce, with a goal of eliminating, the
11        achievement gap between at-risk and non-at-risk
12        students by raising the performance of at-risk
13        students and not by reducing standards; and
14            (D) ensure this State satisfies its obligation to
15        assume the primary responsibility to fund public
16        education and simultaneously relieve the
17        disproportionate burden placed on local property taxes
18        to fund schools.
19        (2) The Evidence-Based Funding formula under this
20    Section shall be applied to all Organizational Units in
21    this State. The Evidence-Based Funding formula outlined in
22    this Act is based on the formula outlined in Senate Bill 1
23    of the 100th General Assembly, as passed by both
24    legislative chambers. As further defined and described in
25    this Section, there are 4 major components of the
26    Evidence-Based Funding model:

 

 

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1            (A) First, the model calculates a unique Adequacy
2        Target for each Organizational Unit in this State that
3        considers the costs to implement research-based
4        activities, the unit's student demographics, and
5        regional wage differences.
6            (B) Second, the model calculates each
7        Organizational Unit's Local Capacity, or the amount
8        each Organizational Unit is assumed to contribute
9        toward its Adequacy Target from local resources.
10            (C) Third, the model calculates how much funding
11        the State currently contributes to the Organizational
12        Unit and adds that to the unit's Local Capacity to
13        determine the unit's overall current adequacy of
14        funding.
15            (D) Finally, the model's distribution method
16        allocates new State funding to those Organizational
17        Units that are least well-funded, considering both
18        Local Capacity and State funding, in relation to their
19        Adequacy Target.
20        (3) An Organizational Unit receiving any funding under
21    this Section may apply those funds to any fund so received
22    for which that Organizational Unit is authorized to make
23    expenditures by law.
24        (4) As used in this Section, the following terms shall
25    have the meanings ascribed in this paragraph (4):
26        "Adequacy Target" is defined in paragraph (1) of

 

 

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1    subsection (b) of this Section.
2        "Adjusted EAV" is defined in paragraph (4) of
3    subsection (d) of this Section.
4        "Adjusted Local Capacity Target" is defined in
5    paragraph (3) of subsection (c) of this Section.
6        "Adjusted Operating Tax Rate" means a tax rate for all
7    Organizational Units, for which the State Superintendent
8    shall calculate and subtract for the Operating Tax Rate a
9    transportation rate based on total expenses for
10    transportation services under this Code, as reported on
11    the most recent Annual Financial Report in Pupil
12    Transportation Services, function 2550 in both the
13    Education and Transportation funds and functions 4110 and
14    4120 in the Transportation fund, less any corresponding
15    fiscal year State of Illinois scheduled payments excluding
16    net adjustments for prior years for regular, vocational,
17    or special education transportation reimbursement pursuant
18    to Section 29-5 or subsection (b) of Section 14-13.01 of
19    this Code divided by the Adjusted EAV. If an
20    Organizational Unit's corresponding fiscal year State of
21    Illinois scheduled payments excluding net adjustments for
22    prior years for regular, vocational, or special education
23    transportation reimbursement pursuant to Section 29-5 or
24    subsection (b) of Section 14-13.01 of this Code exceed the
25    total transportation expenses, as defined in this
26    paragraph, no transportation rate shall be subtracted from

 

 

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1    the Operating Tax Rate.
2        "Allocation Rate" is defined in paragraph (3) of
3    subsection (g) of this Section.
4        "Alternative School" means a public school that is
5    created and operated by a regional superintendent of
6    schools and approved by the State Board.
7        "Applicable Tax Rate" is defined in paragraph (1) of
8    subsection (d) of this Section.
9        "Assessment" means any of those benchmark, progress
10    monitoring, formative, diagnostic, and other assessments,
11    in addition to the State accountability assessment, that
12    assist teachers' needs in understanding the skills and
13    meeting the needs of the students they serve.
14        "Assistant principal" means a school administrator
15    duly endorsed to be employed as an assistant principal in
16    this State.
17        "At-risk student" means a student who is at risk of
18    not meeting the Illinois Learning Standards or not
19    graduating from elementary or high school and who
20    demonstrates a need for vocational support or social
21    services beyond that provided by the regular school
22    program. All students included in an Organizational Unit's
23    Low-Income Count, as well as all English learner and
24    disabled students attending the Organizational Unit, shall
25    be considered at-risk students under this Section.
26        "Average Student Enrollment" or "ASE" for fiscal year

 

 

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1    2018 means, for an Organizational Unit, the greater of the
2    average number of students (grades K through 12) reported
3    to the State Board as enrolled in the Organizational Unit
4    on October 1 in the immediately preceding school year,
5    plus the pre-kindergarten students who receive special
6    education services of 2 or more hours a day as reported to
7    the State Board on December 1 in the immediately preceding
8    school year, or the average number of students (grades K
9    through 12) reported to the State Board as enrolled in the
10    Organizational Unit on October 1, plus the
11    pre-kindergarten students who receive special education
12    services of 2 or more hours a day as reported to the State
13    Board on December 1, for each of the immediately preceding
14    3 school years. For fiscal year 2019 and each subsequent
15    fiscal year, "Average Student Enrollment" or "ASE" means,
16    for an Organizational Unit, the greater of the average
17    number of students (grades K through 12) reported to the
18    State Board as enrolled in the Organizational Unit on
19    October 1 and March 1 in the immediately preceding school
20    year, plus the pre-kindergarten students who receive
21    special education services as reported to the State Board
22    on October 1 and March 1 in the immediately preceding
23    school year, or the average number of students (grades K
24    through 12) reported to the State Board as enrolled in the
25    Organizational Unit on October 1 and March 1, plus the
26    pre-kindergarten students who receive special education

 

 

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1    services as reported to the State Board on October 1 and
2    March 1, for each of the immediately preceding 3 school
3    years. For the purposes of this definition, "enrolled in
4    the Organizational Unit" means the number of students
5    reported to the State Board who are enrolled in schools
6    within the Organizational Unit that the student attends or
7    would attend if not placed or transferred to another
8    school or program to receive needed services. For the
9    purposes of calculating "ASE", all students, grades K
10    through 12, excluding those attending kindergarten for a
11    half day and students attending an alternative education
12    program operated by a regional office of education or
13    intermediate service center, shall be counted as 1.0. All
14    students attending kindergarten for a half day shall be
15    counted as 0.5, unless in 2017 by June 15 or by March 1 in
16    subsequent years, the school district reports to the State
17    Board of Education the intent to implement full-day
18    kindergarten district-wide for all students, then all
19    students attending kindergarten shall be counted as 1.0.
20    Special education pre-kindergarten students shall be
21    counted as 0.5 each. If the State Board does not collect or
22    has not collected both an October 1 and March 1 enrollment
23    count by grade or a December 1 collection of special
24    education pre-kindergarten students as of August 31, 2017
25    (the effective date of Public Act 100-465), it shall
26    establish such collection for all future years. For any

 

 

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1    year in which a count by grade level was collected only
2    once, that count shall be used as the single count
3    available for computing a 3-year average ASE. Funding for
4    programs operated by a regional office of education or an
5    intermediate service center must be calculated using the
6    Evidence-Based Funding formula under this Section for the
7    2019-2020 school year and each subsequent school year
8    until separate adequacy formulas are developed and adopted
9    for each type of program. ASE for a program operated by a
10    regional office of education or an intermediate service
11    center must be determined by the March 1 enrollment for
12    the program. For the 2019-2020 school year, the ASE used
13    in the calculation must be the first-year ASE and, in that
14    year only, the assignment of students served by a regional
15    office of education or intermediate service center shall
16    not result in a reduction of the March enrollment for any
17    school district. For the 2020-2021 school year, the ASE
18    must be the greater of the current-year ASE or the 2-year
19    average ASE. Beginning with the 2021-2022 school year, the
20    ASE must be the greater of the current-year ASE or the
21    3-year average ASE. School districts shall submit the data
22    for the ASE calculation to the State Board within 45 days
23    of the dates required in this Section for submission of
24    enrollment data in order for it to be included in the ASE
25    calculation. For fiscal year 2018 only, the ASE
26    calculation shall include only enrollment taken on October

 

 

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1    1. In recognition of the impact of COVID-19, the
2    definition of "Average Student Enrollment" or "ASE" shall
3    be adjusted for calculations under this Section for fiscal
4    years 2022 through 2024. For fiscal years 2022 through
5    2024, the enrollment used in the calculation of ASE
6    representing the 2020-2021 school year shall be the
7    greater of the enrollment for the 2020-2021 school year or
8    the 2019-2020 school year.
9        "Base Funding Guarantee" is defined in paragraph (10)
10    of subsection (g) of this Section.
11        "Base Funding Minimum" is defined in subsection (e) of
12    this Section.
13        "Base Tax Year" means the property tax levy year used
14    to calculate the Budget Year allocation of primary State
15    aid.
16        "Base Tax Year's Extension" means the product of the
17    equalized assessed valuation utilized by the county clerk
18    in the Base Tax Year multiplied by the limiting rate as
19    calculated by the county clerk and defined in PTELL.
20        "Bilingual Education Allocation" means the amount of
21    an Organizational Unit's final Adequacy Target
22    attributable to bilingual education divided by the
23    Organizational Unit's final Adequacy Target, the product
24    of which shall be multiplied by the amount of new funding
25    received pursuant to this Section. An Organizational
26    Unit's final Adequacy Target attributable to bilingual

 

 

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1    education shall include all additional investments in
2    English learner students' adequacy elements.
3        "Budget Year" means the school year for which primary
4    State aid is calculated and awarded under this Section.
5        "Central office" means individual administrators and
6    support service personnel charged with managing the
7    instructional programs, business and operations, and
8    security of the Organizational Unit.
9        "Comparable Wage Index" or "CWI" means a regional cost
10    differentiation metric that measures systemic, regional
11    variations in the salaries of college graduates who are
12    not educators. The CWI utilized for this Section shall,
13    for the first 3 years of Evidence-Based Funding
14    implementation, be the CWI initially developed by the
15    National Center for Education Statistics, as most recently
16    updated by Texas A & M University. In the fourth and
17    subsequent years of Evidence-Based Funding implementation,
18    the State Superintendent shall re-determine the CWI using
19    a similar methodology to that identified in the Texas A & M
20    University study, with adjustments made no less frequently
21    than once every 5 years.
22        "Computer technology and equipment" means computers
23    servers, notebooks, network equipment, copiers, printers,
24    instructional software, security software, curriculum
25    management courseware, and other similar materials and
26    equipment.

 

 

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1        "Computer technology and equipment investment
2    allocation" means the final Adequacy Target amount of an
3    Organizational Unit assigned to Tier 1 or Tier 2 in the
4    prior school year attributable to the additional $285.50
5    per student computer technology and equipment investment
6    grant divided by the Organizational Unit's final Adequacy
7    Target, the result of which shall be multiplied by the
8    amount of new funding received pursuant to this Section.
9    An Organizational Unit assigned to a Tier 1 or Tier 2 final
10    Adequacy Target attributable to the received computer
11    technology and equipment investment grant shall include
12    all additional investments in computer technology and
13    equipment adequacy elements.
14        "Core subject" means mathematics; science; reading,
15    English, writing, and language arts; history and social
16    studies; world languages; and subjects taught as Advanced
17    Placement in high schools.
18        "Core teacher" means a regular classroom teacher in
19    elementary schools and teachers of a core subject in
20    middle and high schools.
21        "Core Intervention teacher (tutor)" means a licensed
22    teacher providing one-on-one or small group tutoring to
23    students struggling to meet proficiency in core subjects.
24        "CPPRT" means corporate personal property replacement
25    tax funds paid to an Organizational Unit during the
26    calendar year one year before the calendar year in which a

 

 

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1    school year begins, pursuant to "An Act in relation to the
2    abolition of ad valorem personal property tax and the
3    replacement of revenues lost thereby, and amending and
4    repealing certain Acts and parts of Acts in connection
5    therewith", certified August 14, 1979, as amended (Public
6    Act 81-1st S.S.-1).
7        "EAV" means equalized assessed valuation as defined in
8    paragraph (2) of subsection (d) of this Section and
9    calculated in accordance with paragraph (3) of subsection
10    (d) of this Section.
11        "ECI" means the Bureau of Labor Statistics' national
12    employment cost index for civilian workers in educational
13    services in elementary and secondary schools on a
14    cumulative basis for the 12-month calendar year preceding
15    the fiscal year of the Evidence-Based Funding calculation.
16        "EIS Data" means the employment information system
17    data maintained by the State Board on educators within
18    Organizational Units.
19        "Employee benefits" means health, dental, and vision
20    insurance offered to employees of an Organizational Unit,
21    the costs associated with the statutorily required payment
22    of the normal cost of the Organizational Unit's teacher
23    pensions, Social Security employer contributions, and
24    Illinois Municipal Retirement Fund employer contributions.
25        "English learner" or "EL" means a child included in
26    the definition of "English learners" under Section 14C-2

 

 

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1    of this Code participating in a program of transitional
2    bilingual education or a transitional program of
3    instruction meeting the requirements and program
4    application procedures of Article 14C of this Code. For
5    the purposes of collecting the number of EL students
6    enrolled, the same collection and calculation methodology
7    as defined above for "ASE" shall apply to English
8    learners, with the exception that EL student enrollment
9    shall include students in grades pre-kindergarten through
10    12.
11        "Essential Elements" means those elements, resources,
12    and educational programs that have been identified through
13    academic research as necessary to improve student success,
14    improve academic performance, close achievement gaps, and
15    provide for other per student costs related to the
16    delivery and leadership of the Organizational Unit, as
17    well as the maintenance and operations of the unit, and
18    which are specified in paragraph (2) of subsection (b) of
19    this Section.
20        "Evidence-Based Funding" means State funding provided
21    to an Organizational Unit pursuant to this Section.
22        "Extended day" means academic and enrichment programs
23    provided to students outside the regular school day before
24    and after school or during non-instructional times during
25    the school day.
26        "Extension Limitation Ratio" means a numerical ratio

 

 

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1    in which the numerator is the Base Tax Year's Extension
2    and the denominator is the Preceding Tax Year's Extension.
3        "Final Percent of Adequacy" is defined in paragraph
4    (4) of subsection (f) of this Section.
5        "Final Resources" is defined in paragraph (3) of
6    subsection (f) of this Section.
7        "Full-time equivalent" or "FTE" means the full-time
8    equivalency compensation for staffing the relevant
9    position at an Organizational Unit.
10        "Funding Gap" is defined in paragraph (1) of
11    subsection (g).
12        "Hybrid District" means a partial elementary unit
13    district created pursuant to Article 11E of this Code.
14        "Instructional assistant" means a core or special
15    education, non-licensed employee who assists a teacher in
16    the classroom and provides academic support to students.
17        "Instructional facilitator" means a qualified teacher
18    or licensed teacher leader who facilitates and coaches
19    continuous improvement in classroom instruction; provides
20    instructional support to teachers in the elements of
21    research-based instruction or demonstrates the alignment
22    of instruction with curriculum standards and assessment
23    tools; develops or coordinates instructional programs or
24    strategies; develops and implements training; chooses
25    standards-based instructional materials; provides
26    teachers with an understanding of current research; serves

 

 

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1    as a mentor, site coach, curriculum specialist, or lead
2    teacher; or otherwise works with fellow teachers, in
3    collaboration, to use data to improve instructional
4    practice or develop model lessons.
5        "Instructional materials" means relevant
6    instructional materials for student instruction,
7    including, but not limited to, textbooks, consumable
8    workbooks, laboratory equipment, library books, and other
9    similar materials.
10        "Laboratory School" means a public school that is
11    created and operated by a public university and approved
12    by the State Board.
13        "Librarian" means a teacher with an endorsement as a
14    library information specialist or another individual whose
15    primary responsibility is overseeing library resources
16    within an Organizational Unit.
17        "Limiting rate for Hybrid Districts" means the
18    combined elementary school and high school limiting rates.
19        "Local Capacity" is defined in paragraph (1) of
20    subsection (c) of this Section.
21        "Local Capacity Percentage" is defined in subparagraph
22    (A) of paragraph (2) of subsection (c) of this Section.
23        "Local Capacity Ratio" is defined in subparagraph (B)
24    of paragraph (2) of subsection (c) of this Section.
25        "Local Capacity Target" is defined in paragraph (2) of
26    subsection (c) of this Section.

 

 

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1        "Low-Income Count" means, for an Organizational Unit
2    in a fiscal year, the higher of the average number of
3    students for the prior school year or the immediately
4    preceding 3 school years who, as of July 1 of the
5    immediately preceding fiscal year (as determined by the
6    Department of Human Services), are eligible for at least
7    one of the following low-income programs: Medicaid, the
8    Children's Health Insurance Program, Temporary Assistance
9    for Needy Families (TANF), or the Supplemental Nutrition
10    Assistance Program, excluding pupils who are eligible for
11    services provided by the Department of Children and Family
12    Services. Until such time that grade level low-income
13    populations become available, grade level low-income
14    populations shall be determined by applying the low-income
15    percentage to total student enrollments by grade level.
16    The low-income percentage is determined by dividing the
17    Low-Income Count by the Average Student Enrollment. The
18    low-income percentage for programs operated by a regional
19    office of education or an intermediate service center must
20    be set to the weighted average of the low-income
21    percentages of all of the school districts in the service
22    region. The weighted low-income percentage is the result
23    of multiplying the low-income percentage of each school
24    district served by the regional office of education or
25    intermediate service center by each school district's
26    Average Student Enrollment, summarizing those products and

 

 

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1    dividing the total by the total Average Student Enrollment
2    for the service region.
3        "Maintenance and operations" means custodial services,
4    facility and ground maintenance, facility operations,
5    facility security, routine facility repairs, and other
6    similar services and functions.
7        "Minimum Funding Level" is defined in paragraph (9) of
8    subsection (g) of this Section.
9        "New Property Tax Relief Pool Funds" means, for any
10    given fiscal year, all State funds appropriated under
11    Section 2-3.170 of this Code.
12        "New State Funds" means, for a given school year, all
13    State funds appropriated for Evidence-Based Funding in
14    excess of the amount needed to fund the Base Funding
15    Minimum for all Organizational Units in that school year.
16        "Nurse" means an individual licensed as a certified
17    school nurse, in accordance with the rules established for
18    nursing services by the State Board, who is an employee of
19    and is available to provide health care-related services
20    for students of an Organizational Unit.
21        "Operating Tax Rate" means the rate utilized in the
22    previous year to extend property taxes for all purposes,
23    except Bond and Interest, Summer School, Rent, Capital
24    Improvement, and Vocational Education Building purposes.
25    For Hybrid Districts, the Operating Tax Rate shall be the
26    combined elementary and high school rates utilized in the

 

 

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1    previous year to extend property taxes for all purposes,
2    except Bond and Interest, Summer School, Rent, Capital
3    Improvement, and Vocational Education Building purposes.
4        "Organizational Unit" means a Laboratory School or any
5    public school district that is recognized as such by the
6    State Board and that contains elementary schools typically
7    serving kindergarten through 5th grades, middle schools
8    typically serving 6th through 8th grades, high schools
9    typically serving 9th through 12th grades, a program
10    established under Section 2-3.66 or 2-3.41, or a program
11    operated by a regional office of education or an
12    intermediate service center under Article 13A or 13B. The
13    General Assembly acknowledges that the actual grade levels
14    served by a particular Organizational Unit may vary
15    slightly from what is typical.
16        "Organizational Unit CWI" is determined by calculating
17    the CWI in the region and original county in which an
18    Organizational Unit's primary administrative office is
19    located as set forth in this paragraph, provided that if
20    the Organizational Unit CWI as calculated in accordance
21    with this paragraph is less than 0.9, the Organizational
22    Unit CWI shall be increased to 0.9. Each county's current
23    CWI value shall be adjusted based on the CWI value of that
24    county's neighboring Illinois counties, to create a
25    "weighted adjusted index value". This shall be calculated
26    by summing the CWI values of all of a county's adjacent

 

 

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1    Illinois counties and dividing by the number of adjacent
2    Illinois counties, then taking the weighted value of the
3    original county's CWI value and the adjacent Illinois
4    county average. To calculate this weighted value, if the
5    number of adjacent Illinois counties is greater than 2,
6    the original county's CWI value will be weighted at 0.25
7    and the adjacent Illinois county average will be weighted
8    at 0.75. If the number of adjacent Illinois counties is 2,
9    the original county's CWI value will be weighted at 0.33
10    and the adjacent Illinois county average will be weighted
11    at 0.66. The greater of the county's current CWI value and
12    its weighted adjusted index value shall be used as the
13    Organizational Unit CWI.
14        "Preceding Tax Year" means the property tax levy year
15    immediately preceding the Base Tax Year.
16        "Preceding Tax Year's Extension" means the product of
17    the equalized assessed valuation utilized by the county
18    clerk in the Preceding Tax Year multiplied by the
19    Operating Tax Rate.
20        "Preliminary Percent of Adequacy" is defined in
21    paragraph (2) of subsection (f) of this Section.
22        "Preliminary Resources" is defined in paragraph (2) of
23    subsection (f) of this Section.
24        "Principal" means a school administrator duly endorsed
25    to be employed as a principal in this State.
26        "Professional development" means training programs for

 

 

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1    licensed staff in schools, including, but not limited to,
2    programs that assist in implementing new curriculum
3    programs, provide data focused or academic assessment data
4    training to help staff identify a student's weaknesses and
5    strengths, target interventions, improve instruction,
6    encompass instructional strategies for English learner,
7    gifted, or at-risk students, address inclusivity, cultural
8    sensitivity, or implicit bias, or otherwise provide
9    professional support for licensed staff.
10        "Prototypical" means 450 special education
11    pre-kindergarten and kindergarten through grade 5 students
12    for an elementary school, 450 grade 6 through 8 students
13    for a middle school, and 600 grade 9 through 12 students
14    for a high school.
15        "PTELL" means the Property Tax Extension Limitation
16    Law.
17        "PTELL EAV" is defined in paragraph (4) of subsection
18    (d) of this Section.
19        "Pupil support staff" means a nurse, psychologist,
20    social worker, family liaison personnel, or other staff
21    member who provides support to at-risk or struggling
22    students.
23        "Real Receipts" is defined in paragraph (1) of
24    subsection (d) of this Section.
25        "Regionalization Factor" means, for a particular
26    Organizational Unit, the figure derived by dividing the

 

 

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1    Organizational Unit CWI by the Statewide Weighted CWI.
2        "School counselor" means a licensed school counselor
3    who provides guidance and counseling support for students
4    within an Organizational Unit.
5        "School site staff" means the primary school secretary
6    and any additional clerical personnel assigned to a
7    school.
8        "Special education" means special educational
9    facilities and services, as defined in Section 14-1.08 of
10    this Code.
11        "Special Education Allocation" means the amount of an
12    Organizational Unit's final Adequacy Target attributable
13    to special education divided by the Organizational Unit's
14    final Adequacy Target, the product of which shall be
15    multiplied by the amount of new funding received pursuant
16    to this Section. An Organizational Unit's final Adequacy
17    Target attributable to special education shall include all
18    special education investment adequacy elements.
19        "Specialist teacher" means a teacher who provides
20    instruction in subject areas not included in core
21    subjects, including, but not limited to, art, music,
22    physical education, health, driver education,
23    career-technical education, and such other subject areas
24    as may be mandated by State law or provided by an
25    Organizational Unit.
26        "Specially Funded Unit" means an Alternative School,

 

 

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1    safe school, Department of Juvenile Justice school,
2    special education cooperative or entity recognized by the
3    State Board as a special education cooperative,
4    State-approved charter school, or alternative learning
5    opportunities program that received direct funding from
6    the State Board during the 2016-2017 school year through
7    any of the funding sources included within the calculation
8    of the Base Funding Minimum or Glenwood Academy.
9        "Supplemental Grant Funding" means supplemental
10    general State aid funding received by an Organizational
11    Unit during the 2016-2017 school year pursuant to
12    subsection (H) of Section 18-8.05 of this Code (now
13    repealed).
14        "State Adequacy Level" is the sum of the Adequacy
15    Targets of all Organizational Units.
16        "State Board" means the State Board of Education.
17        "State Superintendent" means the State Superintendent
18    of Education.
19        "Statewide Weighted CWI" means a figure determined by
20    multiplying each Organizational Unit CWI times the ASE for
21    that Organizational Unit creating a weighted value,
22    summing all Organizational Units' weighted values, and
23    dividing by the total ASE of all Organizational Units,
24    thereby creating an average weighted index.
25        "Student activities" means non-credit producing
26    after-school programs, including, but not limited to,

 

 

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1    clubs, bands, sports, and other activities authorized by
2    the school board of the Organizational Unit.
3        "Substitute teacher" means an individual teacher or
4    teaching assistant who is employed by an Organizational
5    Unit and is temporarily serving the Organizational Unit on
6    a per diem or per period-assignment basis to replace
7    another staff member.
8        "Summer school" means academic and enrichment programs
9    provided to students during the summer months outside of
10    the regular school year.
11        "Supervisory aide" means a non-licensed staff member
12    who helps in supervising students of an Organizational
13    Unit, but does so outside of the classroom, in situations
14    such as, but not limited to, monitoring hallways and
15    playgrounds, supervising lunchrooms, or supervising
16    students when being transported in buses serving the
17    Organizational Unit.
18        "Target Ratio" is defined in paragraph (4) of
19    subsection (g).
20        "Tier 1", "Tier 2", "Tier 3", and "Tier 4" are defined
21    in paragraph (3) of subsection (g).
22        "Tier 1 Aggregate Funding", "Tier 2 Aggregate
23    Funding", "Tier 3 Aggregate Funding", and "Tier 4
24    Aggregate Funding" are defined in paragraph (1) of
25    subsection (g).
26    (b) Adequacy Target calculation.

 

 

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1        (1) Each Organizational Unit's Adequacy Target is the
2    sum of the Organizational Unit's cost of providing
3    Essential Elements, as calculated in accordance with this
4    subsection (b), with the salary amounts in the Essential
5    Elements multiplied by a Regionalization Factor calculated
6    pursuant to paragraph (3) of this subsection (b).
7        (2) The Essential Elements are attributable on a pro
8    rata basis related to defined subgroups of the ASE of each
9    Organizational Unit as specified in this paragraph (2),
10    with investments and FTE positions pro rata funded based
11    on ASE counts in excess of or less than the thresholds set
12    forth in this paragraph (2). The method for calculating
13    attributable pro rata costs and the defined subgroups
14    thereto are as follows:
15            (A) Core class size investments. Each
16        Organizational Unit shall receive the funding required
17        to support that number of FTE core teacher positions
18        as is needed to keep the respective class sizes of the
19        Organizational Unit to the following maximum numbers:
20                (i) For grades kindergarten through 3, the
21            Organizational Unit shall receive funding required
22            to support one FTE core teacher position for every
23            15 Low-Income Count students in those grades and
24            one FTE core teacher position for every 20
25            non-Low-Income Count students in those grades.
26                (ii) For grades 4 through 12, the

 

 

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1            Organizational Unit shall receive funding required
2            to support one FTE core teacher position for every
3            20 Low-Income Count students in those grades and
4            one FTE core teacher position for every 25
5            non-Low-Income Count students in those grades.
6            The number of non-Low-Income Count students in a
7        grade shall be determined by subtracting the
8        Low-Income students in that grade from the ASE of the
9        Organizational Unit for that grade.
10            (B) Specialist teacher investments. Each
11        Organizational Unit shall receive the funding needed
12        to cover that number of FTE specialist teacher
13        positions that correspond to the following
14        percentages:
15                (i) if the Organizational Unit operates an
16            elementary or middle school, then 20.00% of the
17            number of the Organizational Unit's core teachers,
18            as determined under subparagraph (A) of this
19            paragraph (2); and
20                (ii) if such Organizational Unit operates a
21            high school, then 33.33% of the number of the
22            Organizational Unit's core teachers.
23            (C) Instructional facilitator investments. Each
24        Organizational Unit shall receive the funding needed
25        to cover one FTE instructional facilitator position
26        for every 200 combined ASE of pre-kindergarten

 

 

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1        children with disabilities and all kindergarten
2        through grade 12 students of the Organizational Unit.
3            (D) Core intervention teacher (tutor) investments.
4        Each Organizational Unit shall receive the funding
5        needed to cover one FTE teacher position for each
6        prototypical elementary, middle, and high school.
7            (E) Substitute teacher investments. Each
8        Organizational Unit shall receive the funding needed
9        to cover substitute teacher costs that is equal to
10        5.70% of the minimum pupil attendance days required
11        under Section 10-19 of this Code for all full-time
12        equivalent core, specialist, and intervention
13        teachers, school nurses, special education teachers
14        and instructional assistants, instructional
15        facilitators, and summer school and extended day
16        teacher positions, as determined under this paragraph
17        (2), at a salary rate of 33.33% of the average salary
18        for grade K through 12 teachers and 33.33% of the
19        average salary of each instructional assistant
20        position.
21            (F) Core school counselor investments. Each
22        Organizational Unit shall receive the funding needed
23        to cover one FTE school counselor for each 450
24        combined ASE of pre-kindergarten children with
25        disabilities and all kindergarten through grade 5
26        students, plus one FTE school counselor for each 250

 

 

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1        grades 6 through 8 ASE middle school students, plus
2        one FTE school counselor for each 250 grades 9 through
3        12 ASE high school students.
4            (G) Nurse investments. Each Organizational Unit
5        shall receive the funding needed to cover one FTE
6        nurse for each 750 combined ASE of pre-kindergarten
7        children with disabilities and all kindergarten
8        through grade 12 students across all grade levels it
9        serves.
10            (H) Supervisory aide investments. Each
11        Organizational Unit shall receive the funding needed
12        to cover one FTE for each 225 combined ASE of
13        pre-kindergarten children with disabilities and all
14        kindergarten through grade 5 students, plus one FTE
15        for each 225 ASE middle school students, plus one FTE
16        for each 200 ASE high school students.
17            (I) Librarian investments. Each Organizational
18        Unit shall receive the funding needed to cover one FTE
19        librarian for each prototypical elementary school,
20        middle school, and high school and one FTE aide or
21        media technician for every 300 combined ASE of
22        pre-kindergarten children with disabilities and all
23        kindergarten through grade 12 students.
24            (J) Principal investments. Each Organizational
25        Unit shall receive the funding needed to cover one FTE
26        principal position for each prototypical elementary

 

 

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1        school, plus one FTE principal position for each
2        prototypical middle school, plus one FTE principal
3        position for each prototypical high school.
4            (K) Assistant principal investments. Each
5        Organizational Unit shall receive the funding needed
6        to cover one FTE assistant principal position for each
7        prototypical elementary school, plus one FTE assistant
8        principal position for each prototypical middle
9        school, plus one FTE assistant principal position for
10        each prototypical high school.
11            (L) School site staff investments. Each
12        Organizational Unit shall receive the funding needed
13        for one FTE position for each 225 ASE of
14        pre-kindergarten children with disabilities and all
15        kindergarten through grade 5 students, plus one FTE
16        position for each 225 ASE middle school students, plus
17        one FTE position for each 200 ASE high school
18        students.
19            (M) Gifted investments. Each Organizational Unit
20        shall receive $40 per kindergarten through grade 12
21        ASE.
22            (N) Professional development investments. Each
23        Organizational Unit shall receive $125 per student of
24        the combined ASE of pre-kindergarten children with
25        disabilities and all kindergarten through grade 12
26        students for trainers and other professional

 

 

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1        development-related expenses for supplies and
2        materials.
3            (O) Instructional material investments. Each
4        Organizational Unit shall receive $190 per student of
5        the combined ASE of pre-kindergarten children with
6        disabilities and all kindergarten through grade 12
7        students to cover instructional material costs.
8            (P) Assessment investments. Each Organizational
9        Unit shall receive $25 per student of the combined ASE
10        of pre-kindergarten children with disabilities and all
11        kindergarten through grade 12 students to cover
12        assessment costs.
13            (Q) Computer technology and equipment investments.
14        Each Organizational Unit shall receive $285.50 per
15        student of the combined ASE of pre-kindergarten
16        children with disabilities and all kindergarten
17        through grade 12 students to cover computer technology
18        and equipment costs. For the 2018-2019 school year and
19        subsequent school years, Organizational Units assigned
20        to Tier 1 and Tier 2 in the prior school year shall
21        receive an additional $285.50 per student of the
22        combined ASE of pre-kindergarten children with
23        disabilities and all kindergarten through grade 12
24        students to cover computer technology and equipment
25        costs in the Organizational Unit's Adequacy Target.
26        The State Board may establish additional requirements

 

 

HB2433- 33 -LRB103 29402 RJT 55793 b

1        for Organizational Unit expenditures of funds received
2        pursuant to this subparagraph (Q), including a
3        requirement that funds received pursuant to this
4        subparagraph (Q) may be used only for serving the
5        technology needs of the district. It is the intent of
6        Public Act 100-465 that all Tier 1 and Tier 2 districts
7        receive the addition to their Adequacy Target in the
8        following year, subject to compliance with the
9        requirements of the State Board.
10            (R) Student activities investments. Each
11        Organizational Unit shall receive the following
12        funding amounts to cover student activities: $100 per
13        kindergarten through grade 5 ASE student in elementary
14        school, plus $200 per ASE student in middle school,
15        plus $675 per ASE student in high school.
16            (S) Maintenance and operations investments. Each
17        Organizational Unit shall receive $1,038 per student
18        of the combined ASE of pre-kindergarten children with
19        disabilities and all kindergarten through grade 12
20        students for day-to-day maintenance and operations
21        expenditures, including salary, supplies, and
22        materials, as well as purchased services, but
23        excluding employee benefits. The proportion of salary
24        for the application of a Regionalization Factor and
25        the calculation of benefits is equal to $352.92.
26            (T) Central office investments. Each

 

 

HB2433- 34 -LRB103 29402 RJT 55793 b

1        Organizational Unit shall receive $742 per student of
2        the combined ASE of pre-kindergarten children with
3        disabilities and all kindergarten through grade 12
4        students to cover central office operations, including
5        administrators and classified personnel charged with
6        managing the instructional programs, business and
7        operations of the school district, and security
8        personnel. The proportion of salary for the
9        application of a Regionalization Factor and the
10        calculation of benefits is equal to $368.48.
11            (U) Employee benefit investments. Each
12        Organizational Unit shall receive 30% of the total of
13        all salary-calculated elements of the Adequacy Target,
14        excluding substitute teachers and student activities
15        investments, to cover benefit costs. For central
16        office and maintenance and operations investments, the
17        benefit calculation shall be based upon the salary
18        proportion of each investment. If at any time the
19        responsibility for funding the employer normal cost of
20        teacher pensions is assigned to school districts, then
21        that amount certified by the Teachers' Retirement
22        System of the State of Illinois to be paid by the
23        Organizational Unit for the preceding school year
24        shall be added to the benefit investment. For any
25        fiscal year in which a school district organized under
26        Article 34 of this Code is responsible for paying the

 

 

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1        employer normal cost of teacher pensions, then that
2        amount of its employer normal cost plus the amount for
3        retiree health insurance as certified by the Public
4        School Teachers' Pension and Retirement Fund of
5        Chicago to be paid by the school district for the
6        preceding school year that is statutorily required to
7        cover employer normal costs and the amount for retiree
8        health insurance shall be added to the 30% specified
9        in this subparagraph (U). The Teachers' Retirement
10        System of the State of Illinois and the Public School
11        Teachers' Pension and Retirement Fund of Chicago shall
12        submit such information as the State Superintendent
13        may require for the calculations set forth in this
14        subparagraph (U).
15            (V) Additional investments in low-income students.
16        In addition to and not in lieu of all other funding
17        under this paragraph (2), each Organizational Unit
18        shall receive funding based on the average teacher
19        salary for grades K through 12 to cover the costs of:
20                (i) one FTE intervention teacher (tutor)
21            position for every 125 Low-Income Count students;
22                (ii) one FTE pupil support staff position for
23            every 125 Low-Income Count students;
24                (iii) one FTE extended day teacher position
25            for every 120 Low-Income Count students; and
26                (iv) one FTE summer school teacher position

 

 

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1            for every 120 Low-Income Count students.
2            (W) Additional investments in English learner
3        students. In addition to and not in lieu of all other
4        funding under this paragraph (2), each Organizational
5        Unit shall receive funding based on the average
6        teacher salary for grades K through 12 to cover the
7        costs of:
8                (i) one FTE intervention teacher (tutor)
9            position for every 125 English learner students;
10                (ii) one FTE pupil support staff position for
11            every 125 English learner students;
12                (iii) one FTE extended day teacher position
13            for every 120 English learner students;
14                (iv) one FTE summer school teacher position
15            for every 120 English learner students; and
16                (v) one FTE core teacher position for every
17            100 English learner students.
18            (X) Special education investments. Each
19        Organizational Unit shall receive funding based on the
20        average teacher salary for grades K through 12 to
21        cover special education as follows:
22                (i) one FTE teacher position for every 141
23            combined ASE of pre-kindergarten children with
24            disabilities and all kindergarten through grade 12
25            students;
26                (ii) one FTE instructional assistant for every

 

 

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1            141 combined ASE of pre-kindergarten children with
2            disabilities and all kindergarten through grade 12
3            students; and
4                (iii) one FTE psychologist position for every
5            1,000 combined ASE of pre-kindergarten children
6            with disabilities and all kindergarten through
7            grade 12 students.
8        (3) For calculating the salaries included within the
9    Essential Elements, the State Superintendent shall
10    annually calculate average salaries to the nearest dollar
11    using the employment information system data maintained by
12    the State Board, limited to public schools only and
13    excluding special education and vocational cooperatives,
14    schools operated by the Department of Juvenile Justice,
15    and charter schools, for the following positions:
16            (A) Teacher for grades K through 8.
17            (B) Teacher for grades 9 through 12.
18            (C) Teacher for grades K through 12.
19            (D) School counselor for grades K through 8.
20            (E) School counselor for grades 9 through 12.
21            (F) School counselor for grades K through 12.
22            (G) Social worker.
23            (H) Psychologist.
24            (I) Librarian.
25            (J) Nurse.
26            (K) Principal.

 

 

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1            (L) Assistant principal.
2        For the purposes of this paragraph (3), "teacher"
3    includes core teachers, specialist and elective teachers,
4    instructional facilitators, tutors, special education
5    teachers, pupil support staff teachers, English learner
6    teachers, extended day teachers, and summer school
7    teachers. Where specific grade data is not required for
8    the Essential Elements, the average salary for
9    corresponding positions shall apply. For substitute
10    teachers, the average teacher salary for grades K through
11    12 shall apply.
12        For calculating the salaries included within the
13    Essential Elements for positions not included within EIS
14    Data, the following salaries shall be used in the first
15    year of implementation of Evidence-Based Funding:
16            (i) school site staff, $30,000; and
17            (ii) non-instructional assistant, instructional
18        assistant, library aide, library media tech, or
19        supervisory aide: $25,000.
20        In the second and subsequent years of implementation
21    of Evidence-Based Funding, the amounts in items (i) and
22    (ii) of this paragraph (3) shall annually increase by the
23    ECI.
24        The salary amounts for the Essential Elements
25    determined pursuant to subparagraphs (A) through (L), (S)
26    and (T), and (V) through (X) of paragraph (2) of

 

 

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1    subsection (b) of this Section shall be multiplied by a
2    Regionalization Factor.
3    (c) Local Capacity calculation.
4        (1) Each Organizational Unit's Local Capacity
5    represents an amount of funding it is assumed to
6    contribute toward its Adequacy Target for purposes of the
7    Evidence-Based Funding formula calculation. "Local
8    Capacity" means either (i) the Organizational Unit's Local
9    Capacity Target as calculated in accordance with paragraph
10    (2) of this subsection (c) if its Real Receipts are equal
11    to or less than its Local Capacity Target or (ii) the
12    Organizational Unit's Adjusted Local Capacity, as
13    calculated in accordance with paragraph (3) of this
14    subsection (c) if Real Receipts are more than its Local
15    Capacity Target.
16        (2) "Local Capacity Target" means, for an
17    Organizational Unit, that dollar amount that is obtained
18    by multiplying its Adequacy Target by its Local Capacity
19    Ratio.
20            (A) An Organizational Unit's Local Capacity
21        Percentage is the conversion of the Organizational
22        Unit's Local Capacity Ratio, as such ratio is
23        determined in accordance with subparagraph (B) of this
24        paragraph (2), into a cumulative distribution
25        resulting in a percentile ranking to determine each
26        Organizational Unit's relative position to all other

 

 

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1        Organizational Units in this State. The calculation of
2        Local Capacity Percentage is described in subparagraph
3        (C) of this paragraph (2).
4            (B) An Organizational Unit's Local Capacity Ratio
5        in a given year is the percentage obtained by dividing
6        its Adjusted EAV or PTELL EAV, whichever is less, by
7        its Adequacy Target, with the resulting ratio further
8        adjusted as follows:
9                (i) for Organizational Units serving grades
10            kindergarten through 12 and Hybrid Districts, no
11            further adjustments shall be made;
12                (ii) for Organizational Units serving grades
13            kindergarten through 8, the ratio shall be
14            multiplied by 9/13;
15                (iii) for Organizational Units serving grades
16            9 through 12, the Local Capacity Ratio shall be
17            multiplied by 4/13; and
18                (iv) for an Organizational Unit with a
19            different grade configuration than those specified
20            in items (i) through (iii) of this subparagraph
21            (B), the State Superintendent shall determine a
22            comparable adjustment based on the grades served.
23            (C) The Local Capacity Percentage is equal to the
24        percentile ranking of the district. Local Capacity
25        Percentage converts each Organizational Unit's Local
26        Capacity Ratio to a cumulative distribution resulting

 

 

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1        in a percentile ranking to determine each
2        Organizational Unit's relative position to all other
3        Organizational Units in this State. The Local Capacity
4        Percentage cumulative distribution resulting in a
5        percentile ranking for each Organizational Unit shall
6        be calculated using the standard normal distribution
7        of the score in relation to the weighted mean and
8        weighted standard deviation and Local Capacity Ratios
9        of all Organizational Units. If the value assigned to
10        any Organizational Unit is in excess of 90%, the value
11        shall be adjusted to 90%. For Laboratory Schools, the
12        Local Capacity Percentage shall be set at 10% in
13        recognition of the absence of EAV and resources from
14        the public university that are allocated to the
15        Laboratory School. For programs operated by a regional
16        office of education or an intermediate service center,
17        the Local Capacity Percentage must be set at 10% in
18        recognition of the absence of EAV and resources from
19        school districts that are allocated to the regional
20        office of education or intermediate service center.
21        The weighted mean for the Local Capacity Percentage
22        shall be determined by multiplying each Organizational
23        Unit's Local Capacity Ratio times the ASE for the unit
24        creating a weighted value, summing the weighted values
25        of all Organizational Units, and dividing by the total
26        ASE of all Organizational Units. The weighted standard

 

 

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1        deviation shall be determined by taking the square
2        root of the weighted variance of all Organizational
3        Units' Local Capacity Ratio, where the variance is
4        calculated by squaring the difference between each
5        unit's Local Capacity Ratio and the weighted mean,
6        then multiplying the variance for each unit times the
7        ASE for the unit to create a weighted variance for each
8        unit, then summing all units' weighted variance and
9        dividing by the total ASE of all units.
10            (D) For any Organizational Unit, the
11        Organizational Unit's Adjusted Local Capacity Target
12        shall be reduced by either (i) the school board's
13        remaining contribution pursuant to paragraph (ii) of
14        subsection (b-4) of Section 16-158 of the Illinois
15        Pension Code in a given year or (ii) the board of
16        education's remaining contribution pursuant to
17        paragraph (iv) of subsection (b) of Section 17-129 of
18        the Illinois Pension Code absent the employer normal
19        cost portion of the required contribution and amount
20        allowed pursuant to subdivision (3) of Section
21        17-142.1 of the Illinois Pension Code in a given year.
22        In the preceding sentence, item (i) shall be certified
23        to the State Board of Education by the Teachers'
24        Retirement System of the State of Illinois and item
25        (ii) shall be certified to the State Board of
26        Education by the Public School Teachers' Pension and

 

 

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1        Retirement Fund of the City of Chicago.
2        (3) If an Organizational Unit's Real Receipts are more
3    than its Local Capacity Target, then its Local Capacity
4    shall equal an Adjusted Local Capacity Target as
5    calculated in accordance with this paragraph (3). The
6    Adjusted Local Capacity Target is calculated as the sum of
7    the Organizational Unit's Local Capacity Target and its
8    Real Receipts Adjustment. The Real Receipts Adjustment
9    equals the Organizational Unit's Real Receipts less its
10    Local Capacity Target, with the resulting figure
11    multiplied by the Local Capacity Percentage.
12        As used in this paragraph (3), "Real Percent of
13    Adequacy" means the sum of an Organizational Unit's Real
14    Receipts, CPPRT, and Base Funding Minimum, with the
15    resulting figure divided by the Organizational Unit's
16    Adequacy Target.
17    (d) Calculation of Real Receipts, EAV, and Adjusted EAV
18for purposes of the Local Capacity calculation.
19        (1) An Organizational Unit's Real Receipts are the
20    product of its Applicable Tax Rate and its Adjusted EAV.
21    An Organizational Unit's Applicable Tax Rate is its
22    Adjusted Operating Tax Rate for property within the
23    Organizational Unit.
24        (2) The State Superintendent shall calculate the
25    equalized assessed valuation, or EAV, of all taxable
26    property of each Organizational Unit as of September 30 of

 

 

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1    the previous year in accordance with paragraph (3) of this
2    subsection (d). The State Superintendent shall then
3    determine the Adjusted EAV of each Organizational Unit in
4    accordance with paragraph (4) of this subsection (d),
5    which Adjusted EAV figure shall be used for the purposes
6    of calculating Local Capacity.
7        (3) To calculate Real Receipts and EAV, the Department
8    of Revenue shall supply to the State Superintendent the
9    value as equalized or assessed by the Department of
10    Revenue of all taxable property of every Organizational
11    Unit, together with (i) the applicable tax rate used in
12    extending taxes for the funds of the Organizational Unit
13    as of September 30 of the previous year and (ii) the
14    limiting rate for all Organizational Units subject to
15    property tax extension limitations as imposed under PTELL.
16            (A) The Department of Revenue shall add to the
17        equalized assessed value of all taxable property of
18        each Organizational Unit situated entirely or
19        partially within a county that is or was subject to the
20        provisions of Section 15-176 or 15-177 of the Property
21        Tax Code (i) an amount equal to the total amount by
22        which the homestead exemption allowed under Section
23        15-176 or 15-177 of the Property Tax Code for real
24        property situated in that Organizational Unit exceeds
25        the total amount that would have been allowed in that
26        Organizational Unit if the maximum reduction under

 

 

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1        Section 15-176 was (I) $4,500 in Cook County or $3,500
2        in all other counties in tax year 2003 or (II) $5,000
3        in all counties in tax year 2004 and thereafter and
4        (ii) an amount equal to the aggregate amount for the
5        taxable year of all additional exemptions under
6        Section 15-175 of the Property Tax Code for owners
7        with a household income of $30,000 or less. The county
8        clerk of any county that is or was subject to the
9        provisions of Section 15-176 or 15-177 of the Property
10        Tax Code shall annually calculate and certify to the
11        Department of Revenue for each Organizational Unit all
12        homestead exemption amounts under Section 15-176 or
13        15-177 of the Property Tax Code and all amounts of
14        additional exemptions under Section 15-175 of the
15        Property Tax Code for owners with a household income
16        of $30,000 or less. It is the intent of this
17        subparagraph (A) that if the general homestead
18        exemption for a parcel of property is determined under
19        Section 15-176 or 15-177 of the Property Tax Code
20        rather than Section 15-175, then the calculation of
21        EAV shall not be affected by the difference, if any,
22        between the amount of the general homestead exemption
23        allowed for that parcel of property under Section
24        15-176 or 15-177 of the Property Tax Code and the
25        amount that would have been allowed had the general
26        homestead exemption for that parcel of property been

 

 

HB2433- 46 -LRB103 29402 RJT 55793 b

1        determined under Section 15-175 of the Property Tax
2        Code. It is further the intent of this subparagraph
3        (A) that if additional exemptions are allowed under
4        Section 15-175 of the Property Tax Code for owners
5        with a household income of less than $30,000, then the
6        calculation of EAV shall not be affected by the
7        difference, if any, because of those additional
8        exemptions.
9            (B) With respect to any part of an Organizational
10        Unit within a redevelopment project area in respect to
11        which a municipality has adopted tax increment
12        allocation financing pursuant to the Tax Increment
13        Allocation Redevelopment Act, Division 74.4 of Article
14        11 of the Illinois Municipal Code, or the Industrial
15        Jobs Recovery Law, Division 74.6 of Article 11 of the
16        Illinois Municipal Code, no part of the current EAV of
17        real property located in any such project area that is
18        attributable to an increase above the total initial
19        EAV of such property shall be used as part of the EAV
20        of the Organizational Unit, until such time as all
21        redevelopment project costs have been paid, as
22        provided in Section 11-74.4-8 of the Tax Increment
23        Allocation Redevelopment Act or in Section 11-74.6-35
24        of the Industrial Jobs Recovery Law. For the purpose
25        of the EAV of the Organizational Unit, the total
26        initial EAV or the current EAV, whichever is lower,

 

 

HB2433- 47 -LRB103 29402 RJT 55793 b

1        shall be used until such time as all redevelopment
2        project costs have been paid.
3            (B-5) The real property equalized assessed
4        valuation for a school district shall be adjusted by
5        subtracting from the real property value, as equalized
6        or assessed by the Department of Revenue, for the
7        district an amount computed by dividing the amount of
8        any abatement of taxes under Section 18-170 of the
9        Property Tax Code by 3.00% for a district maintaining
10        grades kindergarten through 12, by 2.30% for a
11        district maintaining grades kindergarten through 8, or
12        by 1.05% for a district maintaining grades 9 through
13        12 and adjusted by an amount computed by dividing the
14        amount of any abatement of taxes under subsection (a)
15        of Section 18-165 of the Property Tax Code by the same
16        percentage rates for district type as specified in
17        this subparagraph (B-5).
18            (C) For Organizational Units that are Hybrid
19        Districts, the State Superintendent shall use the
20        lesser of the adjusted equalized assessed valuation
21        for property within the partial elementary unit
22        district for elementary purposes, as defined in
23        Article 11E of this Code, or the adjusted equalized
24        assessed valuation for property within the partial
25        elementary unit district for high school purposes, as
26        defined in Article 11E of this Code.

 

 

HB2433- 48 -LRB103 29402 RJT 55793 b

1            (D) If a school district's boundaries span
2        multiple counties, then the Department of Revenue
3        shall send to the State Board, for the purposes of
4        calculating Evidence-Based Funding, the limiting rate
5        and individual rates by purpose for the county that
6        contains the majority of the school district's
7        equalized assessed valuation.
8        (4) An Organizational Unit's Adjusted EAV shall be the
9    average of its EAV over the immediately preceding 3 years
10    or the lesser of its EAV in the immediately preceding year
11    or the average of its EAV over the immediately preceding 3
12    years if the EAV in the immediately preceding year has
13    declined by 10% or more when comparing the 2 most recent
14    years. In the event of Organizational Unit reorganization,
15    consolidation, or annexation, the Organizational Unit's
16    Adjusted EAV for the first 3 years after such change shall
17    be as follows: the most current EAV shall be used in the
18    first year, the average of a 2-year EAV or its EAV in the
19    immediately preceding year if the EAV declines by 10% or
20    more when comparing the 2 most recent years for the second
21    year, and the lesser of a 3-year average EAV or its EAV in
22    the immediately preceding year if the Adjusted EAV
23    declines by 10% or more when comparing the 2 most recent
24    years for the third year. For any school district whose
25    EAV in the immediately preceding year is used in
26    calculations, in the following year, the Adjusted EAV

 

 

HB2433- 49 -LRB103 29402 RJT 55793 b

1    shall be the average of its EAV over the immediately
2    preceding 2 years or the immediately preceding year if
3    that year represents a decline of 10% or more when
4    comparing the 2 most recent years.
5        "PTELL EAV" means a figure calculated by the State
6    Board for Organizational Units subject to PTELL as
7    described in this paragraph (4) for the purposes of
8    calculating an Organizational Unit's Local Capacity Ratio.
9    Except as otherwise provided in this paragraph (4), the
10    PTELL EAV of an Organizational Unit shall be equal to the
11    product of the equalized assessed valuation last used in
12    the calculation of general State aid under Section 18-8.05
13    of this Code (now repealed) or Evidence-Based Funding
14    under this Section and the Organizational Unit's Extension
15    Limitation Ratio. If an Organizational Unit has approved
16    or does approve an increase in its limiting rate, pursuant
17    to Section 18-190 of the Property Tax Code, affecting the
18    Base Tax Year, the PTELL EAV shall be equal to the product
19    of the equalized assessed valuation last used in the
20    calculation of general State aid under Section 18-8.05 of
21    this Code (now repealed) or Evidence-Based Funding under
22    this Section multiplied by an amount equal to one plus the
23    percentage increase, if any, in the Consumer Price Index
24    for All Urban Consumers for all items published by the
25    United States Department of Labor for the 12-month
26    calendar year preceding the Base Tax Year, plus the

 

 

HB2433- 50 -LRB103 29402 RJT 55793 b

1    equalized assessed valuation of new property, annexed
2    property, and recovered tax increment value and minus the
3    equalized assessed valuation of disconnected property.
4        As used in this paragraph (4), "new property" and
5    "recovered tax increment value" shall have the meanings
6    set forth in the Property Tax Extension Limitation Law.
7    (e) Base Funding Minimum calculation.
8        (1) For the 2017-2018 school year, the Base Funding
9    Minimum of an Organizational Unit or a Specially Funded
10    Unit shall be the amount of State funds distributed to the
11    Organizational Unit or Specially Funded Unit during the
12    2016-2017 school year prior to any adjustments and
13    specified appropriation amounts described in this
14    paragraph (1) from the following Sections, as calculated
15    by the State Superintendent: Section 18-8.05 of this Code
16    (now repealed); Section 5 of Article 224 of Public Act
17    99-524 (equity grants); Section 14-7.02b of this Code
18    (funding for children requiring special education
19    services); Section 14-13.01 of this Code (special
20    education facilities and staffing), except for
21    reimbursement of the cost of transportation pursuant to
22    Section 14-13.01; Section 14C-12 of this Code (English
23    learners); and Section 18-4.3 of this Code (summer
24    school), based on an appropriation level of $13,121,600.
25    For a school district organized under Article 34 of this
26    Code, the Base Funding Minimum also includes (i) the funds

 

 

HB2433- 51 -LRB103 29402 RJT 55793 b

1    allocated to the school district pursuant to Section 1D-1
2    of this Code attributable to funding programs authorized
3    by the Sections of this Code listed in the preceding
4    sentence and (ii) the difference between (I) the funds
5    allocated to the school district pursuant to Section 1D-1
6    of this Code attributable to the funding programs
7    authorized by Section 14-7.02 (non-public special
8    education reimbursement), subsection (b) of Section
9    14-13.01 (special education transportation), Section 29-5
10    (transportation), Section 2-3.80 (agricultural
11    education), Section 2-3.66 (truants' alternative
12    education), Section 2-3.62 (educational service centers),
13    and Section 14-7.03 (special education - orphanage) of
14    this Code and Section 15 of the Childhood Hunger Relief
15    Act (free breakfast program) and (II) the school
16    district's actual expenditures for its non-public special
17    education, special education transportation,
18    transportation programs, agricultural education, truants'
19    alternative education, services that would otherwise be
20    performed by a regional office of education, special
21    education orphanage expenditures, and free breakfast, as
22    most recently calculated and reported pursuant to
23    subsection (f) of Section 1D-1 of this Code. The Base
24    Funding Minimum for Glenwood Academy shall be $625,500.
25    For programs operated by a regional office of education or
26    an intermediate service center, the Base Funding Minimum

 

 

HB2433- 52 -LRB103 29402 RJT 55793 b

1    must be the total amount of State funds allocated to those
2    programs in the 2018-2019 school year and amounts provided
3    pursuant to Article 34 of Public Act 100-586 and Section
4    3-16 of this Code. All programs established after June 5,
5    2019 (the effective date of Public Act 101-10) and
6    administered by a regional office of education or an
7    intermediate service center must have an initial Base
8    Funding Minimum set to an amount equal to the first-year
9    ASE multiplied by the amount of per pupil funding received
10    in the previous school year by the lowest funded similar
11    existing program type. If the enrollment for a program
12    operated by a regional office of education or an
13    intermediate service center is zero, then it may not
14    receive Base Funding Minimum funds for that program in the
15    next fiscal year, and those funds must be distributed to
16    Organizational Units under subsection (g).
17        (2) For the 2018-2019 and subsequent school years, the
18    Base Funding Minimum of Organizational Units and Specially
19    Funded Units shall be the sum of (i) the amount of
20    Evidence-Based Funding for the prior school year, (ii) the
21    Base Funding Minimum for the prior school year, and (iii)
22    any amount received by a school district pursuant to
23    Section 7 of Article 97 of Public Act 100-21.
24        For the 2022-2023 school year, the Base Funding
25    Minimum of Organizational Units shall be the amounts
26    recalculated by the State Board of Education for Fiscal

 

 

HB2433- 53 -LRB103 29402 RJT 55793 b

1    Year 2019 through Fiscal Year 2022 that were necessary due
2    to average student enrollment errors for districts
3    organized under Article 34 of this Code, plus the Fiscal
4    Year 2022 property tax relief grants provided under
5    Section 2-3.170 of this Code, ensuring each Organizational
6    Unit has the correct amount of resources for Fiscal Year
7    2023 Evidence-Based Funding calculations and that Fiscal
8    Year 2023 Evidence-Based Funding Distributions are made in
9    accordance with this Section.
10        (3) Subject to approval by the General Assembly as
11    provided in this paragraph (3), an Organizational Unit
12    that meets all of the following criteria, as determined by
13    the State Board, shall have District Intervention Money
14    added to its Base Funding Minimum at the time the Base
15    Funding Minimum is calculated by the State Board:
16            (A) The Organizational Unit is operating under an
17        Independent Authority under Section 2-3.25f-5 of this
18        Code for a minimum of 4 school years or is subject to
19        the control of the State Board pursuant to a court
20        order for a minimum of 4 school years.
21            (B) The Organizational Unit was designated as a
22        Tier 1 or Tier 2 Organizational Unit in the previous
23        school year under paragraph (3) of subsection (g) of
24        this Section.
25            (C) The Organizational Unit demonstrates
26        sustainability through a 5-year financial and

 

 

HB2433- 54 -LRB103 29402 RJT 55793 b

1        strategic plan.
2            (D) The Organizational Unit has made sufficient
3        progress and achieved sufficient stability in the
4        areas of governance, academic growth, and finances.
5        As part of its determination under this paragraph (3),
6    the State Board may consider the Organizational Unit's
7    summative designation, any accreditations of the
8    Organizational Unit, or the Organizational Unit's
9    financial profile, as calculated by the State Board.
10        If the State Board determines that an Organizational
11    Unit has met the criteria set forth in this paragraph (3),
12    it must submit a report to the General Assembly, no later
13    than January 2 of the fiscal year in which the State Board
14    makes it determination, on the amount of District
15    Intervention Money to add to the Organizational Unit's
16    Base Funding Minimum. The General Assembly must review the
17    State Board's report and may approve or disapprove, by
18    joint resolution, the addition of District Intervention
19    Money. If the General Assembly fails to act on the report
20    within 40 calendar days from the receipt of the report,
21    the addition of District Intervention Money is deemed
22    approved. If the General Assembly approves the amount of
23    District Intervention Money to be added to the
24    Organizational Unit's Base Funding Minimum, the District
25    Intervention Money must be added to the Base Funding
26    Minimum annually thereafter.

 

 

HB2433- 55 -LRB103 29402 RJT 55793 b

1        For the first 4 years following the initial year that
2    the State Board determines that an Organizational Unit has
3    met the criteria set forth in this paragraph (3) and has
4    received funding under this Section, the Organizational
5    Unit must annually submit to the State Board, on or before
6    November 30, a progress report regarding its financial and
7    strategic plan under subparagraph (C) of this paragraph
8    (3). The plan shall include the financial data from the
9    past 4 annual financial reports or financial audits that
10    must be presented to the State Board by November 15 of each
11    year and the approved budget financial data for the
12    current year. The plan shall be developed according to the
13    guidelines presented to the Organizational Unit by the
14    State Board. The plan shall further include financial
15    projections for the next 3 fiscal years and include a
16    discussion and financial summary of the Organizational
17    Unit's facility needs. If the Organizational Unit does not
18    demonstrate sufficient progress toward its 5-year plan or
19    if it has failed to file an annual financial report, an
20    annual budget, a financial plan, a deficit reduction plan,
21    or other financial information as required by law, the
22    State Board may establish a Financial Oversight Panel
23    under Article 1H of this Code. However, if the
24    Organizational Unit already has a Financial Oversight
25    Panel, the State Board may extend the duration of the
26    Panel.

 

 

HB2433- 56 -LRB103 29402 RJT 55793 b

1    (f) Percent of Adequacy and Final Resources calculation.
2        (1) The Evidence-Based Funding formula establishes a
3    Percent of Adequacy for each Organizational Unit in order
4    to place such units into tiers for the purposes of the
5    funding distribution system described in subsection (g) of
6    this Section. Initially, an Organizational Unit's
7    Preliminary Resources and Preliminary Percent of Adequacy
8    are calculated pursuant to paragraph (2) of this
9    subsection (f). Then, an Organizational Unit's Final
10    Resources and Final Percent of Adequacy are calculated to
11    account for the Organizational Unit's poverty
12    concentration levels pursuant to paragraphs (3) and (4) of
13    this subsection (f).
14        (2) An Organizational Unit's Preliminary Resources are
15    equal to the sum of its Local Capacity Target, CPPRT, and
16    Base Funding Minimum. An Organizational Unit's Preliminary
17    Percent of Adequacy is the lesser of (i) its Preliminary
18    Resources divided by its Adequacy Target or (ii) 100%.
19        (3) Except for Specially Funded Units, an
20    Organizational Unit's Final Resources are equal to the sum
21    of its Local Capacity, CPPRT, and Adjusted Base Funding
22    Minimum. The Base Funding Minimum of each Specially Funded
23    Unit shall serve as its Final Resources, except that the
24    Base Funding Minimum for State-approved charter schools
25    shall not include any portion of general State aid
26    allocated in the prior year based on the per capita

 

 

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1    tuition charge times the charter school enrollment.
2        (4) An Organizational Unit's Final Percent of Adequacy
3    is its Final Resources divided by its Adequacy Target. An
4    Organizational Unit's Adjusted Base Funding Minimum is
5    equal to its Base Funding Minimum less its Supplemental
6    Grant Funding, with the resulting figure added to the
7    product of its Supplemental Grant Funding and Preliminary
8    Percent of Adequacy.
9    (g) Evidence-Based Funding formula distribution system.
10        (1) In each school year under the Evidence-Based
11    Funding formula, each Organizational Unit receives funding
12    equal to the sum of its Base Funding Minimum and the unit's
13    allocation of New State Funds determined pursuant to this
14    subsection (g). To allocate New State Funds, the
15    Evidence-Based Funding formula distribution system first
16    places all Organizational Units into one of 4 tiers in
17    accordance with paragraph (3) of this subsection (g),
18    based on the Organizational Unit's Final Percent of
19    Adequacy. New State Funds are allocated to each of the 4
20    tiers as follows: Tier 1 Aggregate Funding equals 50% of
21    all New State Funds, Tier 2 Aggregate Funding equals 49%
22    of all New State Funds, Tier 3 Aggregate Funding equals
23    0.9% of all New State Funds, and Tier 4 Aggregate Funding
24    equals 0.1% of all New State Funds. Each Organizational
25    Unit within Tier 1 or Tier 2 receives an allocation of New
26    State Funds equal to its tier Funding Gap, as defined in

 

 

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1    the following sentence, multiplied by the tier's
2    Allocation Rate determined pursuant to paragraph (4) of
3    this subsection (g). For Tier 1, an Organizational Unit's
4    Funding Gap equals the tier's Target Ratio, as specified
5    in paragraph (5) of this subsection (g), multiplied by the
6    Organizational Unit's Adequacy Target, with the resulting
7    amount reduced by the Organizational Unit's Final
8    Resources. For Tier 2, an Organizational Unit's Funding
9    Gap equals the tier's Target Ratio, as described in
10    paragraph (5) of this subsection (g), multiplied by the
11    Organizational Unit's Adequacy Target, with the resulting
12    amount reduced by the Organizational Unit's Final
13    Resources and its Tier 1 funding allocation. To determine
14    the Organizational Unit's Funding Gap, the resulting
15    amount is then multiplied by a factor equal to one minus
16    the Organizational Unit's Local Capacity Target
17    percentage. Each Organizational Unit within Tier 3 or Tier
18    4 receives an allocation of New State Funds equal to the
19    product of its Adequacy Target and the tier's Allocation
20    Rate, as specified in paragraph (4) of this subsection
21    (g).
22        (2) To ensure equitable distribution of dollars for
23    all Tier 2 Organizational Units, no Tier 2 Organizational
24    Unit shall receive fewer dollars per ASE than any Tier 3
25    Organizational Unit. Each Tier 2 and Tier 3 Organizational
26    Unit shall have its funding allocation divided by its ASE.

 

 

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1    Any Tier 2 Organizational Unit with a funding allocation
2    per ASE below the greatest Tier 3 allocation per ASE shall
3    get a funding allocation equal to the greatest Tier 3
4    funding allocation per ASE multiplied by the
5    Organizational Unit's ASE. Each Tier 2 Organizational
6    Unit's Tier 2 funding allocation shall be multiplied by
7    the percentage calculated by dividing the original Tier 2
8    Aggregate Funding by the sum of all Tier 2 Organizational
9    Units' Tier 2 funding allocation after adjusting
10    districts' funding below Tier 3 levels.
11        (3) Organizational Units are placed into one of 4
12    tiers as follows:
13            (A) Tier 1 consists of all Organizational Units,
14        except for Specially Funded Units, with a Percent of
15        Adequacy less than the Tier 1 Target Ratio. The Tier 1
16        Target Ratio is the ratio level that allows for Tier 1
17        Aggregate Funding to be distributed, with the Tier 1
18        Allocation Rate determined pursuant to paragraph (4)
19        of this subsection (g).
20            (B) Tier 2 consists of all Tier 1 Units and all
21        other Organizational Units, except for Specially
22        Funded Units, with a Percent of Adequacy of less than
23        0.90.
24            (C) Tier 3 consists of all Organizational Units,
25        except for Specially Funded Units, with a Percent of
26        Adequacy of at least 0.90 and less than 1.0.

 

 

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1            (D) Tier 4 consists of all Organizational Units
2        with a Percent of Adequacy of at least 1.0.
3        (4) The Allocation Rates for Tiers 1 through 4 are
4    determined as follows:
5            (A) The Tier 1 Allocation Rate is 30%.
6            (B) The Tier 2 Allocation Rate is the result of the
7        following equation: Tier 2 Aggregate Funding, divided
8        by the sum of the Funding Gaps for all Tier 2
9        Organizational Units, unless the result of such
10        equation is higher than 1.0. If the result of such
11        equation is higher than 1.0, then the Tier 2
12        Allocation Rate is 1.0.
13            (C) The Tier 3 Allocation Rate is the result of the
14        following equation: Tier 3 Aggregate Funding, divided
15        by the sum of the Adequacy Targets of all Tier 3
16        Organizational Units.
17            (D) The Tier 4 Allocation Rate is the result of the
18        following equation: Tier 4 Aggregate Funding, divided
19        by the sum of the Adequacy Targets of all Tier 4
20        Organizational Units.
21        (5) A tier's Target Ratio is determined as follows:
22            (A) The Tier 1 Target Ratio is the ratio level that
23        allows for Tier 1 Aggregate Funding to be distributed
24        with the Tier 1 Allocation Rate.
25            (B) The Tier 2 Target Ratio is 0.90.
26            (C) The Tier 3 Target Ratio is 1.0.

 

 

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1        (6) If, at any point, the Tier 1 Target Ratio is
2    greater than 90%, then all Tier 1 funding shall be
3    allocated to Tier 2 and no Tier 1 Organizational Unit's
4    funding may be identified.
5        (7) In the event that all Tier 2 Organizational Units
6    receive funding at the Tier 2 Target Ratio level, any
7    remaining New State Funds shall be allocated to Tier 3 and
8    Tier 4 Organizational Units.
9        (8) If any Specially Funded Units, excluding Glenwood
10    Academy, recognized by the State Board do not qualify for
11    direct funding following the implementation of Public Act
12    100-465 from any of the funding sources included within
13    the definition of Base Funding Minimum, the unqualified
14    portion of the Base Funding Minimum shall be transferred
15    to one or more appropriate Organizational Units as
16    determined by the State Superintendent based on the prior
17    year ASE of the Organizational Units.
18        (8.5) If a school district withdraws from a special
19    education cooperative, the portion of the Base Funding
20    Minimum that is attributable to the school district may be
21    redistributed to the school district upon withdrawal. The
22    school district and the cooperative must include the
23    amount of the Base Funding Minimum that is to be
24    reapportioned in their withdrawal agreement and notify the
25    State Board of the change with a copy of the agreement upon
26    withdrawal.

 

 

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1        (9) The Minimum Funding Level is intended to establish
2    a target for State funding that will keep pace with
3    inflation and continue to advance equity through the
4    Evidence-Based Funding formula. The target for State
5    funding of New Property Tax Relief Pool Funds is
6    $50,000,000 for State fiscal year 2019 and subsequent
7    State fiscal years. The Minimum Funding Level is equal to
8    $350,000,000. In addition to any New State Funds, no more
9    than $50,000,000 New Property Tax Relief Pool Funds may be
10    counted toward the Minimum Funding Level. If the sum of
11    New State Funds and applicable New Property Tax Relief
12    Pool Funds are less than the Minimum Funding Level, than
13    funding for tiers shall be reduced in the following
14    manner:
15            (A) First, Tier 4 funding shall be reduced by an
16        amount equal to the difference between the Minimum
17        Funding Level and New State Funds until such time as
18        Tier 4 funding is exhausted.
19            (B) Next, Tier 3 funding shall be reduced by an
20        amount equal to the difference between the Minimum
21        Funding Level and New State Funds and the reduction in
22        Tier 4 funding until such time as Tier 3 funding is
23        exhausted.
24            (C) Next, Tier 2 funding shall be reduced by an
25        amount equal to the difference between the Minimum
26        Funding Level and New State Funds and the reduction in

 

 

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1        Tier 4 and Tier 3.
2            (D) Finally, Tier 1 funding shall be reduced by an
3        amount equal to the difference between the Minimum
4        Funding level and New State Funds and the reduction in
5        Tier 2, 3, and 4 funding. In addition, the Allocation
6        Rate for Tier 1 shall be reduced to a percentage equal
7        to the Tier 1 Allocation Rate set by paragraph (4) of
8        this subsection (g), multiplied by the result of New
9        State Funds divided by the Minimum Funding Level.
10        (9.5) For State fiscal year 2019 and subsequent State
11    fiscal years, if New State Funds exceed $300,000,000, then
12    any amount in excess of $300,000,000 shall be dedicated
13    for purposes of Section 2-3.170 of this Code up to a
14    maximum of $50,000,000.
15        (10) In the event of a decrease in the amount of the
16    appropriation for this Section in any fiscal year after
17    implementation of this Section, the Organizational Units
18    receiving Tier 1 and Tier 2 funding, as determined under
19    paragraph (3) of this subsection (g), shall be held
20    harmless by establishing a Base Funding Guarantee equal to
21    the per pupil kindergarten through grade 12 funding
22    received in accordance with this Section in the prior
23    fiscal year. Reductions shall be made to the Base Funding
24    Minimum of Organizational Units in Tier 3 and Tier 4 on a
25    per pupil basis equivalent to the total number of the ASE
26    in Tier 3-funded and Tier 4-funded Organizational Units

 

 

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1    divided by the total reduction in State funding. The Base
2    Funding Minimum as reduced shall continue to be applied to
3    Tier 3 and Tier 4 Organizational Units and adjusted by the
4    relative formula when increases in appropriations for this
5    Section resume. In no event may State funding reductions
6    to Organizational Units in Tier 3 or Tier 4 exceed an
7    amount that would be less than the Base Funding Minimum
8    established in the first year of implementation of this
9    Section. If additional reductions are required, all school
10    districts shall receive a reduction by a per pupil amount
11    equal to the aggregate additional appropriation reduction
12    divided by the total ASE of all Organizational Units.
13        (11) The State Superintendent shall make minor
14    adjustments to the distribution formula set forth in this
15    subsection (g) to account for the rounding of percentages
16    to the nearest tenth of a percentage and dollar amounts to
17    the nearest whole dollar.
18    (h) State Superintendent administration of funding and
19district submission requirements.
20        (1) The State Superintendent shall, in accordance with
21    appropriations made by the General Assembly or the
22    Education Prioritization Act, meet the funding obligations
23    created under this Section.
24        (2) The State Superintendent shall calculate the
25    Adequacy Target for each Organizational Unit under this
26    Section. No Evidence-Based Funding shall be distributed

 

 

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1    within an Organizational Unit without the approval of the
2    unit's school board.
3        (3) Annually, the State Superintendent shall calculate
4    and report to each Organizational Unit the unit's
5    aggregate financial adequacy amount, which shall be the
6    sum of the Adequacy Target for each Organizational Unit.
7    The State Superintendent shall calculate and report
8    separately for each Organizational Unit the unit's total
9    State funds allocated for its students with disabilities.
10    The State Superintendent shall calculate and report
11    separately for each Organizational Unit the amount of
12    funding and applicable FTE calculated for each Essential
13    Element of the unit's Adequacy Target.
14        (4) Annually, the State Superintendent shall calculate
15    and report to each Organizational Unit the amount the unit
16    must expend on special education and bilingual education
17    and computer technology and equipment for Organizational
18    Units assigned to Tier 1 or Tier 2 that received an
19    additional $285.50 per student computer technology and
20    equipment investment grant to their Adequacy Target
21    pursuant to the unit's Base Funding Minimum, Special
22    Education Allocation, Bilingual Education Allocation, and
23    computer technology and equipment investment allocation.
24        (5) Moneys distributed under this Section shall be
25    calculated on a school year basis, but paid on a fiscal
26    year basis, with payments beginning in August and

 

 

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1    extending through June. Unless otherwise provided, the
2    moneys appropriated for each fiscal year shall be
3    distributed in 22 equal payments at least 2 times monthly
4    to each Organizational Unit. If moneys appropriated for
5    any fiscal year are distributed other than monthly, the
6    distribution shall be on the same basis for each
7    Organizational Unit.
8        (6) Any school district that fails, for any given
9    school year, to maintain school as required by law or to
10    maintain a recognized school is not eligible to receive
11    Evidence-Based Funding. In case of non-recognition of one
12    or more attendance centers in a school district otherwise
13    operating recognized schools, the claim of the district
14    shall be reduced in the proportion that the enrollment in
15    the attendance center or centers bears to the enrollment
16    of the school district. "Recognized school" means any
17    public school that meets the standards for recognition by
18    the State Board. A school district or attendance center
19    not having recognition status at the end of a school term
20    is entitled to receive State aid payments due upon a legal
21    claim that was filed while it was recognized.
22        (7) School district claims filed under this Section
23    are subject to Sections 18-9 and 18-12 of this Code,
24    except as otherwise provided in this Section.
25        (8) Each fiscal year, the State Superintendent shall
26    calculate for each Organizational Unit an amount of its

 

 

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1    Base Funding Minimum and Evidence-Based Funding that shall
2    be deemed attributable to the provision of special
3    educational facilities and services, as defined in Section
4    14-1.08 of this Code, in a manner that ensures compliance
5    with maintenance of State financial support requirements
6    under the federal Individuals with Disabilities Education
7    Act. An Organizational Unit must use such funds only for
8    the provision of special educational facilities and
9    services, as defined in Section 14-1.08 of this Code, and
10    must comply with any expenditure verification procedures
11    adopted by the State Board.
12        (9) All Organizational Units in this State must submit
13    annual spending plans by the end of September of each year
14    to the State Board as part of the annual budget process,
15    which shall describe how each Organizational Unit will
16    utilize the Base Funding Minimum and Evidence-Based
17    Funding it receives from this State under this Section
18    with specific identification of the intended utilization
19    of Low-Income, English learner, and special education
20    resources. Additionally, the annual spending plans of each
21    Organizational Unit shall describe how the Organizational
22    Unit expects to achieve student growth and how the
23    Organizational Unit will achieve State education goals, as
24    defined by the State Board. The State Superintendent may,
25    from time to time, identify additional requisites for
26    Organizational Units to satisfy when compiling the annual

 

 

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1    spending plans required under this subsection (h). The
2    format and scope of annual spending plans shall be
3    developed by the State Superintendent and the State Board
4    of Education. School districts that serve students under
5    Article 14C of this Code shall continue to submit
6    information as required under Section 14C-12 of this Code.
7        (10) No later than January 1, 2018, the State
8    Superintendent shall develop a 5-year strategic plan for
9    all Organizational Units to help in planning for adequacy
10    funding under this Section. The State Superintendent shall
11    submit the plan to the Governor and the General Assembly,
12    as provided in Section 3.1 of the General Assembly
13    Organization Act. The plan shall include recommendations
14    for:
15            (A) a framework for collaborative, professional,
16        innovative, and 21st century learning environments
17        using the Evidence-Based Funding model;
18            (B) ways to prepare and support this State's
19        educators for successful instructional careers;
20            (C) application and enhancement of the current
21        financial accountability measures, the approved State
22        plan to comply with the federal Every Student Succeeds
23        Act, and the Illinois Balanced Accountability Measures
24        in relation to student growth and elements of the
25        Evidence-Based Funding model; and
26            (D) implementation of an effective school adequacy

 

 

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1        funding system based on projected and recommended
2        funding levels from the General Assembly.
3        (11) On an annual basis, the State Superintendent must
4    recalibrate all of the following per pupil elements of the
5    Adequacy Target and applied to the formulas, based on the
6    study of average expenses and as reported in the most
7    recent annual financial report:
8            (A) Gifted under subparagraph (M) of paragraph (2)
9        of subsection (b).
10            (B) Instructional materials under subparagraph (O)
11        of paragraph (2) of subsection (b).
12            (C) Assessment under subparagraph (P) of paragraph
13        (2) of subsection (b).
14            (D) Student activities under subparagraph (R) of
15        paragraph (2) of subsection (b).
16            (E) Maintenance and operations under subparagraph
17        (S) of paragraph (2) of subsection (b).
18            (F) Central office under subparagraph (T) of
19        paragraph (2) of subsection (b).
20    (i) Professional Review Panel.
21        (1) A Professional Review Panel is created to study
22    and review topics related to the implementation and effect
23    of Evidence-Based Funding, as assigned by a joint
24    resolution or Public Act of the General Assembly or a
25    motion passed by the State Board of Education. The Panel
26    must provide recommendations to and serve the Governor,

 

 

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1    the General Assembly, and the State Board. The State
2    Superintendent or his or her designee must serve as a
3    voting member and chairperson of the Panel. The State
4    Superintendent must appoint a vice chairperson from the
5    membership of the Panel. The Panel must advance
6    recommendations based on a three-fifths majority vote of
7    Panel members present and voting. A minority opinion may
8    also accompany any recommendation of the Panel. The Panel
9    shall be appointed by the State Superintendent, except as
10    otherwise provided in paragraph (2) of this subsection (i)
11    and include the following members:
12            (A) Two appointees that represent district
13        superintendents, recommended by a statewide
14        organization that represents district superintendents.
15            (B) Two appointees that represent school boards,
16        recommended by a statewide organization that
17        represents school boards.
18            (C) Two appointees from districts that represent
19        school business officials, recommended by a statewide
20        organization that represents school business
21        officials.
22            (D) Two appointees that represent school
23        principals, recommended by a statewide organization
24        that represents school principals.
25            (E) Two appointees that represent teachers,
26        recommended by a statewide organization that

 

 

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1        represents teachers.
2            (F) Two appointees that represent teachers,
3        recommended by another statewide organization that
4        represents teachers.
5            (G) Two appointees that represent regional
6        superintendents of schools, recommended by
7        organizations that represent regional superintendents.
8            (H) Two independent experts selected solely by the
9        State Superintendent.
10            (I) Two independent experts recommended by public
11        universities in this State.
12            (J) One member recommended by a statewide
13        organization that represents parents.
14            (K) Two representatives recommended by collective
15        impact organizations that represent major metropolitan
16        areas or geographic areas in Illinois.
17            (L) One member from a statewide organization
18        focused on research-based education policy to support
19        a school system that prepares all students for
20        college, a career, and democratic citizenship.
21            (M) One representative from a school district
22        organized under Article 34 of this Code.
23        The State Superintendent shall ensure that the
24    membership of the Panel includes representatives from
25    school districts and communities reflecting the
26    geographic, socio-economic, racial, and ethnic diversity

 

 

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1    of this State. The State Superintendent shall additionally
2    ensure that the membership of the Panel includes
3    representatives with expertise in bilingual education and
4    special education. Staff from the State Board shall staff
5    the Panel.
6        (2) In addition to those Panel members appointed by
7    the State Superintendent, 4 members of the General
8    Assembly shall be appointed as follows: one member of the
9    House of Representatives appointed by the Speaker of the
10    House of Representatives, one member of the Senate
11    appointed by the President of the Senate, one member of
12    the House of Representatives appointed by the Minority
13    Leader of the House of Representatives, and one member of
14    the Senate appointed by the Minority Leader of the Senate.
15    There shall be one additional member appointed by the
16    Governor. All members appointed by legislative leaders or
17    the Governor shall be non-voting, ex officio members.
18        (3) The Panel must study topics at the direction of
19    the General Assembly or State Board of Education, as
20    provided under paragraph (1). The Panel may also study the
21    following topics at the direction of the chairperson:
22            (A) The format and scope of annual spending plans
23        referenced in paragraph (9) of subsection (h) of this
24        Section.
25            (B) The Comparable Wage Index under this Section.
26            (C) Maintenance and operations, including capital

 

 

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1        maintenance and construction costs.
2            (D) "At-risk student" definition.
3            (E) Benefits.
4            (F) Technology.
5            (G) Local Capacity Target.
6            (H) Funding for Alternative Schools, Laboratory
7        Schools, safe schools, and alternative learning
8        opportunities programs.
9            (I) Funding for college and career acceleration
10        strategies.
11            (J) Special education investments.
12            (K) Early childhood investments, in collaboration
13        with the Illinois Early Learning Council.
14        (4) (Blank).
15        (5) Within 5 years after the implementation of this
16    Section, and every 5 years thereafter, the Panel shall
17    complete an evaluative study of the entire Evidence-Based
18    Funding model, including an assessment of whether or not
19    the formula is achieving State goals. The Panel shall
20    report to the State Board, the General Assembly, and the
21    Governor on the findings of the study.
22        (6) (Blank).
23        (7) To ensure that (i) the Adequacy Target calculation
24    under subsection (b) accurately reflects the needs of
25    students living in poverty or attending schools located in
26    areas of high poverty, (ii) racial equity within the

 

 

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1    Evidence-Based Funding formula is explicitly explored and
2    advanced, and (iii) the funding goals of the formula
3    distribution system established under this Section are
4    sufficient to provide adequate funding for every student
5    and to fully fund every school in this State, the Panel
6    shall review the Essential Elements under paragraph (2) of
7    subsection (b). The Panel shall consider all of the
8    following in its review:
9            (A) The financial ability of school districts to
10        provide instruction in a foreign language to every
11        student and whether an additional Essential Element
12        should be added to the formula to ensure that every
13        student has access to instruction in a foreign
14        language.
15            (B) The adult-to-student ratio for each Essential
16        Element in which a ratio is identified. The Panel
17        shall consider whether the ratio accurately reflects
18        the staffing needed to support students living in
19        poverty or who have traumatic backgrounds.
20            (C) Changes to the Essential Elements that may be
21        required to better promote racial equity and eliminate
22        structural racism within schools.
23            (D) The impact of investing $350,000,000 in
24        additional funds each year under this Section and an
25        estimate of when the school system will become fully
26        funded under this level of appropriation.

 

 

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1            (E) Provide an overview of alternative funding
2        structures that would enable the State to become fully
3        funded at an earlier date.
4            (F) The potential to increase efficiency and to
5        find cost savings within the school system to expedite
6        the journey to a fully funded system.
7            (G) The appropriate levels for reenrolling and
8        graduating high-risk high school students who have
9        been previously out of school. These outcomes shall
10        include enrollment, attendance, skill gains, credit
11        gains, graduation or promotion to the next grade
12        level, and the transition to college, training, or
13        employment, with an emphasis on progressively
14        increasing the overall attendance.
15            (H) The evidence-based or research-based practices
16        that are shown to reduce the gaps and disparities
17        experienced by African American students in academic
18        achievement and educational performance, including
19        practices that have been shown to reduce disparities
20        in disciplinary rates, drop-out rates, graduation
21        rates, college matriculation rates, and college
22        completion rates.
23        On or before December 31, 2021, the Panel shall report
24    to the State Board, the General Assembly, and the Governor
25    on the findings of its review. This paragraph (7) is
26    inoperative on and after July 1, 2022.

 

 

HB2433- 76 -LRB103 29402 RJT 55793 b

1    (j) References. Beginning July 1, 2017, references in
2other laws to general State aid funds or calculations under
3Section 18-8.05 of this Code (now repealed) shall be deemed to
4be references to evidence-based model formula funds or
5calculations under this Section.
6(Source: P.A. 101-10, eff. 6-5-19; 101-17, eff. 6-14-19;
7101-643, eff. 6-18-20; 101-654, eff. 3-8-21; 102-33, eff.
86-25-21; 102-197, eff. 7-30-21; 102-558, eff. 8-20-21;
9102-699, eff. 4-19-22; 102-782, eff. 1-1-23; 102-813, eff.
105-13-22; 102-894, eff. 5-20-22; revised 12-13-22.)
 
11    Section 90. The State Mandates Act is amended by adding
12Section 8.47 as follows:
 
13    (30 ILCS 805/8.47 new)
14    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
158 of this Act, no reimbursement by the State is required for
16the implementation of any mandate created by this amendatory
17Act of the 103rd General Assembly.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.